Understanding opportunity cost

You work as an assistant coach on the university basketball team and earn $15 per hour. One day, you decide to skip the hour-long practice and, instead, go to the local carnival, which has an admission fee of $9.

The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is.

A.$6

B.$9

C.$15

D.$24

Question

Giovani Grimes

Business

2 October, 16:22

Understanding opportunity cost

You work as an assistant coach on the university basketball team and earn $15 per hour. One day, you decide to skip the hour-long practice and, instead, go to the local carnival, which has an admission fee of $9.

The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is.

A.$6

B.$9

C.$15

D.$24

+4

Answers (1)

Know the Answer?

Dud · Answer 1

D.$24

Explanation:

Opportunity cost: The opportunity cost is that cost which gives the best alternative option

The computation of the total cost is shown below:

= Earning per hour + admission fee

= $15 per hour + $9

= $24

Since the question is asking for the total cost, so we consider both the costs i. e earning per hour and admission fee.